The strong dollar seems bearish for Bitcoin in the short term, but this is exactly the fuel for a long-term bull market Morgan Stanley recently admitted outright: they were wrong about being bearish on the dollar before. U.S. Treasury yields are surging again, and U.S. interest rates are more attractive than those overseas, causing capital to flow back into dollar-denominated assets. For Bitcoin, this is a direct short-term bearish factor: a stronger dollar, Treasuries offering nearly 5% yields, and naturally, funds are less eager to buy BTC, which doesn’t yield interest and is more volatile. So the short-term logic is: strong dollar → high Treasury yields → capital flows back to dollar assets → BTC under pressure. But if you zoom out, the logic completely flips. U.S. debt is already nearing $40 trillion. The higher the interest rates, the higher the refinancing costs for old debt, the greater the fiscal interest expenses. Higher interest rates lead to bigger deficits, and bigger deficits mean issuing even more debt. In other words, the high interest rates currently supporting the strong dollar are simultaneously worsening the U.S. debt problem. This is the real reason Bitcoin is gaining global attention. In the short term, high interest rates are competing with BTC for capital. In the long term, the longer high interest rates persist, the harder it becomes for the U.S. to sustain its fiscal situation, eventually leading to rate cuts, liquidity injections, and even longer-term currency dilution. The first phase suppresses Bitcoin, but the second phase creates the most familiar environment for Bitcoin’s growth. So this strong dollar cycle feels more like: Short-term bearish, long-term bullish for BTC. Right now, Bitcoin is being held down by the 5% Treasury yield, but in the future, what might truly push Bitcoin upward could be the U.S. ultimately unable to sustain that 5%.